Good News For 40 Crore SBI Customers: IMPS Is Free Upto Rs 5 Lakh; But Pay Rs 20 For Branch Visit

Reportedly, India’s largest public-sector lender, the State Bank of India (SBI) has increased the limit on its immediate payment service (IMPS) transactions. 

Why Would This Happen?

It seems that SBI has enhanced the free IMPS online transactions limit to Rs 5 lakh from Rs 2 lakh, in order to encourage customers to adopt digital banking. 

According to the SBI’s announcement, the customers can make transactions up to Rs 5 lakh instead of the earlier Rs 2 lakh limit as of February 1.

Further, the lender said that it will not levy any service charge on Immediate Payment Service (IMPS) transactions up to Rs 5 lakh done through Internet banking/Mobile Banking including YONO, in a statement.

Although, the has added a new slab for Rs 2 lakh to Rs 5 lakh. 

IMPS Transactions From Branches Will Attract Service Charges

It is noteworthy here that for IMPS transactions done through branches for amounts ranging Rs 2 lakh to Rs 5 lakh will attract the service charges of Rs 20 plus GST. 

The changes in new service charges will be effective from February 1, 2022.

While talking about the charges, SBI said, “The service charges on IMPS are in line with the Service Charges on NEFT/RTGS transactions,” SBI said.

No Change For Existing Slabs

Please note here that there is no change in the service charges in the existing slabs in the case of Branch Channels.

As part of the new IMPS slab, the SBI has fixed the service charges for transferring money at Rs 20 which is excluding GST. 

Consider the case for the transactions under Rs 2 lakh, the bank will levy a service charge between Rs 2 to 12, plus GST.

On the other hand, for IMPS transactions which are done digitally through net banking or by using mobile banking or YONO, SBI will not levy any service charge.

Applicable Service Charges

This can be understood by a sample demonstration of the applicable charges below.

1. No charges will be applicable for a transaction of upto Rs 1000 
2. For above Rs 1000/- and upto Rs 10,000, Rs 2 plus GST will be applicable
3. For above Rs 10,000/- and upto Rs 1,00,000, Rs 4 plus GST will be applicable
4. For above Rs 1,00,000/- and upto Rs 2,00,000, Rs 12 plus GST will be applicable
5. For above Rs 2,00,000/- and upto Rs 5,00,000, Rs 20 plus  GST will be applicable

So far, 94.4 million customers using internet banking and mobile banking stand at and close to 21 million respectively.